NOC increases storage capacities of diesel, petrol

May 10, 2017

The Kathmandu Post, 10th May 2017, Post Report, Kathmandu

Nepal Oil Corporation (NOC) has increased its diesel and petrol storage capacities by 4,100 and 4,200 kilolitres respectively by upgrading its kerosene storage tanks at its depots in Amlekhgunj and Thankot.

The increased capacity translates into two and five days’ additional supplies of diesel and petrol respectively.

According to the state-owned oil monopoly, it has been working to increase its gasoline storage capacities due to rapidly swelling demand. NOC’s Amlekhgunj depot supplies fuel to the Kathmandu Valley, Dhading and Chitwan. The Thankot depot supplies fuel to the Valley and Kavrepalanchok and Sindhupalchok districts.

NOC Spokesperson Sitaram Pokharel said the corporation had increased gasoline storage capacities by converting its kerosene tanks at both depots. “There is little demand for kerosene these days, so NOC has decided to upgrade kerosene tanks to store petrol and diesel,” he said.

Currently, NOC can hold 5,100 kilolitres of petrol at its depots across the country. The stock is barely enough for 10 days. Similarly, the Thankot depot has a capacity to store 1,870 kilolitres of gasoline, just about enough to meet the requirement of the Valley for five days.

The expansion has boosted the storage capacity to 6,000 kilolitres. According to NOC, it is enough to fulfill the Valley’s requirement for 15-18 days.

NOC records show that the country imported 294,213 kilolitres of petrol and 923,384 kilolitres of diesel in the first nine months of this fiscal year. Similarly, the country imported 120,257 kilolitres of aviation fuel, 13,398 kilolitres of kerosene and 225,764 tonnes of cooking gas over the period.

The corporation has installed aluminum internal floating roofs in its two kerosene storage tanks which can hold 2,100 kilolitres each. The aluminum internal floating roof, according to NOC, helps to prevent losses due to evaporation.

Pokharel said the petrol storage tank at the Thankot depot had been completed. “We are carrying out final tests on the floating roof,” he said. Pokharel added that NOC had spent Rs17 million to expand the petrol storage capacity at its Thankot depot.

NOC said it had recently repaired its two tanks in Amlekhgunj to store a total of 4,660 kilolitres of diesel. In addition, it has started repair work on a 680-kilolitre petrol tank. As per the enterprise, these tanks had been lying unused for more than three years.

Pokharel said NOC would be inviting tenders to conduct maintenance of the petrol storage tank by the end of this month. He added that they planned to use the repaired tank from the next fiscal year.